The Octorara team is committed to operating with efficiency and high standards, and we are always searching for new ways to strengthen and improve our school district while being fiscally responsible. On Monday, September 16, our School Board was presented with a proposal that we believe will address both of these goals. We have been exploring what potential there might be for Octorara in solar energy since late fall of 2023.

In the presentation, our financial advisors from Raymond James, representatives from the McClure Company and administrative team presented information to the Board about a plan to potentially transition our district’s energy source to solar power. This solar array would be owned and operated by our school district, for sole use by our district, and would be based on a grouping of solar panels that could be installed on district land behind Octorara Intermediate School.

Please see the links below to learn more.

Community Letter - September 13, 2024

School Board Presentation - September 16, 2024

School Board Meeting Live Recording - September 16, 2024

Here is a sample of the questions we have collected from township meetings (zoning hearings, supervisors), email, school board meetings and a community information session.

Proposed 3.49 mW Solar Array - Octorara Area School District

Solar Questions collected from community - September 2024

Overview: The Octorara Area School District is exploring the option to install a ground mounted solar array on the District’s campus. The solar array would offset the electrical demand for the District, stabilize electrical costs into the future, and provide educational opportunities for our students.

Based on the public interest and involvement in the project, the District has compiled questions from the various School Board Meetings, Facility Meetings, and Township meetings and has prepared the following FAQ for the project.  If you have additional questions please email the District at jhardy@octorara.org.

Q: Why does the district want to move to solar?

A: The district is interested in the possibility of cost savings over the life of a solar array project and for the educational benefits for our students. Our conservative estimates for savings to the district are in excess of $21 million dollars. The conservative nature of our projections have been confirmed by our finance team at Raymond James Financial, Inc., the energy service partner, McClure Company, who guarantees the stated energy production. Representatives from the Department of Treasury recently reviewed the financial forecast prepared by Raymond James and indicated that the values we are using were very conservative and that our realized savings could be much higher. The educational benefits come from our students learning about the production of energy and the use of real time data to track and predict outcomes with the system, to learn about sustainability energy development, and from the integration of agriculture with the array.

Q: How Affordable is the system?

A: The proposed system will cost an estimated $8.6 million. The federal government is providing incentives for school districts to move to solar energy, however, including rebates under the Inflation Reduction Act that will reimburse Octorara more than  $2 million after the system is operational. There are also rebates from the power company valued at more than $400,000. The state legislature has also recently passed a Solar for Schools program that will also provide a financial incentive for Octorara (though that amount has not yet been set.)

Q: How much is in the Capital Reserve fund at Octorara?  

A:  Today, $3.7 million is in our Capital Reserve Account. We would take $2 million of this to fund that solar array, and would return $2 million from Federal credits in the first year of operation. 

Q: This proposal claims to be very advantageous to the district. If it is so good, why have other districts not taken the same opportunity?

A: Octorara has some conditions that might be unique to our setting that make the possibility of a switch to solar more appealing than some other districts. 

• All of the District’s buildings fall within a two mile radius. Based on the proximity of the District’s property we are able to use the utility’s net metering regulations and combine the utility bills into one “virtual” meter and have one array for the entire District. For larger districts where their schools are spread across their area, exceeding the two mile criteria, their schools would not meet this requirement and would require multiple solar projects (increased costs).

•  Many school districts do not have the land necessary to build a solar array on their property. Some districts can utilize rooftops or parking lots. Octorara is unique in that our available land is on the same plot as all of our campuses.

• In the past year, the state passed legislation that made the installation of solar arrays more financially viable for school districts.. Federal funding is now available through the Inflation Reduction Act (ICA).

• Because Octorara has managed its financial resources very responsibly, we are in  the unique financial position to be able to allocate $2 million dollars for the project, a cost which is recovered in the first year of operation. Some districts do not have that financial capacity. 

Q: I’m curious to know if the savings from this switch will be invested into bettering and adding additional school programs. What are the plans?

A: At Octorara we continue to put programs in place to support students and empowering them to build successful futures. In the early years of our conversion to solar (the first 7 years), the majority of our savings will be dedicated to paying for the solar system. We project about $385,000 annually in those first 7 years that will be added to the bottom line of our budget.

The bettering of and additions to our programs come from our general budget and is our highest priority. Those programs will always be funded first and most completely. So, in other words, programs are first in line. In this example, the $385,000 goes to the bottom line to support the many other things that are needed to support students and learning and helps to ensure that we have the funds available to make learning and programs our highest priority.

Q: How will students be involved in the solar project?

A: Students will not be involved in the construction of the solar array. After completion of the array, students would benefit from a kiosk located in the schools and a data portal  that tracks the generation and operational data from the array and solar production. Students in math and science have access to real time data on energy production and can study the impact of weather on energy production and the decay of solar production. FFA students will be able to house sheep on the footprint of the array and use the land for agricultural purposes. 

Q: Why does the district want to move to solar?

A: The district is interested in the possibility of cost savings over the life of a solar array project and for the educational benefits for our students. Our conservative estimates for savings to the district are in excess of $21 million dollars. The conservative nature of our projections have been confirmed by our finance team at Raymond James Financial, Inc., the energy service partner who guarantees the stated energy production, and most recently by the US Department of Treasury. Representatives from the Department of Treasury recently reviewed the financial forecast prepared by Raymond James and  indicated that the values we are using were very conservative and that our realized savings could be much higher. The educational benefits come from our students learning about the production of energy and the use of real time data to track and predict outcomes with the system, to learn about sustainability energy development, and the integration of agriculture with the array.

Q: How Affordable is the system?

A: The proposed system is not inexpensive, an estimated $8.6 million. There are incentives for Octorara to move to solar though. Schools consume 11% of all energy produced in Pennsylvania. The more schools the government can convince to install solar, the less the energy grid is stressed. There are currently rebates under the Inflation Reduction Act that will reimburse the Octorara over $2 million after the system is operational. There are also rebates from the power company valued at over $400,000. The state legislature has also recently passed a Solar for Schools program that will also provide a financial incentive for Octorara. The amount of the grant from the state has not yet been set.

Q: Won’t this be covering up farmland?

A: The solar array will cover about 10 acres. The array is a fixed title, ground mounted system, that is installed using piles driven into the ground to support the solar panels.  The estimated coverage within the array would be limited to the piles and any equipment pads to support the electrical gear.  While we have not started the engineering and design of the solar array, the typical “coverage” for a project of this size is about a quarter acre.  The remaining area within the protective fence line will be planted using an approved pollinator seed mix that includes Pennsylvania native grasses and wildflowers. This vegetative cover grows about as high as the bottom of the solar panel and could be maintained by mowing or by a flock of sheep.

Q: How reliable is solar power?

A: The reliability of solar energy generation through a solar array depends on several factors. However, overall,solar arrays are considered to be a highly reliable source of energy with low maintenance needs and predictable output under the right conditions. Here’s a breakdown of what affects the reliability of solar energy generation:

• Sunlight Availability: Solar energy production is directly related to sunlight, so geographic location and weather patterns are critical. Areas with high sunshine hours (like the southwestern U.S.) see more consistent energy generation, while regions with frequent cloud cover may experience variability. Our proposed solar array was designed using data from local weather stations to calibrate solar energy production to our location.

• Seasonal Variation: Solar production is higher in the summer due to longer days and more direct sunlight, and lower in the winter. Our system was designed to account for the seasonal variation by using an annual average production curve to over-produce electricity during the summer months.

Q: What guarantees are there for energy production?

A: The current proposal from the energy services partner we have been working with, the McClure Company, guarantees the energy cost savings for the district. How can they do this? Based on local weather patterns and the performance of the solar array components, McClure has forecasted the energy production for the site. Based on this formula, McClure is able to offer Octorara guaranteed savings and to provide a financial assurance to back the guarantee.

Q: What happens when the solar array is no longer useful?

A: The district must file a Decommissioning Plan with the Townships.  Many solar projects require a decommissioning plan to be prepared and submitted as part of the project application process. This plan ensures compliance with local regulations and includes financial assurances (like a bond) to cover the cost (estimated at about $375,000) of decommissioning at the end of the project’s useful life. The plan covers for the removal of the solar panels, racking, electrical gear, buried electrical wire, and returning the site to its existing site conditions. 

Q: Panels need continual maintenance. Who maintains the solar array?

A: At this time, we anticipate Octorara will contract with a third party to maintain our solar array. Solar panels generally have long lifespans (20–30 years) and degrade slowly over time (about 0.5% per year), which means their energy generation remains reliable over decades. Inverters and other components may need replacement more frequently (typically every 10–15 years).

Solar arrays require minimal maintenance, mostly to maintain equipment warranty requirements, efficiency testing, and the occasional cleaning to remove dust that rainfall or snow accumulation does not wash off. This makes the array more reliable than systems with moving parts, like solar tracking solar arrays or wind turbines. At this time, we anticipate Octorara will contract with a third party to maintain our solar array.

Q: Will there be battery storage on school property?

A: One of the key challenges with solar energy is that it only generates electricity when the sun is shining. To mitigate this, solar arrays paired with battery storage systems can store excess energy for use during night hours or cloudy days, improving the overall reliability of energy supply. Because Octorara will remain connected to the electrical grid, we do not plan to store power in batteries on our campuses.

Q: Does the solar array create any noise?

A: A 10-acre solar array itself generates very little noise, especially from the solar panels themselves. Solar panels are silent during operation because they have no moving parts. However, there are some sources of minimal noise associated with solar arrays, primarily from auxiliary equipment.

• A Primary Source of Noise: The inverter(s), which convert the DC electricity produced by the solar panels into AC electricity for use in homes or the grid, do produce a minimal humming sound. This sound typically ranges from 50 to 65 decibels (similar to the hum of a refrigerator or quiet conversation).

• Distance Consideration: The noise from inverters diminishes significantly with distance, and even in a large solar array, it's usually only audible when you're near the equipment (within 25 to 50 feet or so). Beyond that, it's typically not noticeable.

• Electrical Transformers: If the array feeds into the grid, transformers might be required to step up the voltage. Transformers emit a low hum, but like inverters, this is minimal and typically only noticeable up close. New transformers, if needed, will be located near existing transformers at the school.

Q: Will Octorara be truly generating its own electricity, or will it still be tied to the grid?

A: We will be tied to the existing power grid. Solar arrays connected to the electrical grid are more reliable because they can feed excess electricity into the grid and draw power from it when solar production is low, ensuring consistent power availability. Our energy production will “feed” the grid and when we are not producing enough energy we will draw from the grid. Annually, the power company justifies our meters and we are given the difference. Note that we begin by generating 114% of our average usage.

Q: How does the ground cover under the solar panels impact water runoff or soil health?

A: The groundcover that will be used at the site includes deep rooted native grasses and wildflowers.  The deep vegetative roots which can penetrate about two to three feet below ground surface when fully mature. The deep rooted vegetation allows for increased surface water infiltration and soil stabilization. The township will require that stormwater will need to be managed onsite as part of the permit approvals.

Q: What happens to the farmland when the panels reach the end of their life? Can the land be restored for agricultural use?

A: By township ordinance, when the solar array is decommissioned, the district must return the land to its previous condition. Octorara will bear the cost of decommissioning the solar array. Today that projected cost is $375,000. There are at least four phases of decommissioning:

Dismantling the Solar Panels

• Removing the Panels: Solar panels are typically the first components to be removed. Since they contain valuable materials like glass, aluminum, and silicon, they can often be recycled.

• Recycling or Repurposing: Many of the materials in solar panels (about 85–90%) can be recycled. Some panels may also be repurposed for use in other locations or sold in secondary markets if they are still functional.

Dismantling Electrical Components

• Inverters and Wiring: After the panels, the inverters and electrical wiring are removed. Inverters typically have shorter lifespans than panels and may have already been replaced during the array’s life. They contain valuable metals like copper and aluminum, which can be recycled.

• Electrical Disconnect: The system is disconnected from the electrical grid, and any supporting infrastructure (like transformers or control systems) is carefully dismantled.

Removing Mounting Structures

• Ground-Mounted Systems: For ground-mounted arrays, the metal racks and posts that hold the panels are removed. These structures are usually made of aluminum or steel, both of which can be recycled.

• Concrete Foundations: If there are concrete foundations or ballast used to support the array, these are also removed. Concrete may be broken down and repurposed as aggregate or recycled.

Land Restoration

• Restoring the Site: If the solar array is installed on land (such as farmland or other open areas), the land may need to be restored to its previous condition. This could involve:

  • Removing any debris and equipment left over from the system.

  • Tilling the soil or adding topsoil to improve soil health.

  • Planting vegetation or returning the land to agricultural use.

Q: Have we done an energy efficiency study for the district?  Example:  Air condition… How many rooms have window unit AC's?  

A: We have not completed a study specifically on efficiency, but it is a part of a larger study that is underway for the 2024-2025 school year. Our goal is to upgrade our buildings to remove the smaller, less efficient AC units and replace them with larger up-to-date systems. The same is true with lighting, we are continually replacing outdated less efficient lighting with LED lighting.

Q: What if the student body grows and we need to add another building. Will the 10 acre array allow for the added structure, or will there be a need to add additional panels?

A: Any projection on building a new building based on enrollment increases is speculative. We are conducting a study on our facilities and buildings and will have better data and projections later this school year. This is something we watch closely though, as we have some time to respond to changes in our student populations. 

As for the solar array, we are only allowed to produce slightly more than we consume at this point. So we are not allowed to “over build” for future use. Assuming that we continue to work towards efficiency in our electrical load it will be interesting to see what those projections would be in the future. We will have a number of options. It could mean that our efficiencies indicate we do not need more panels. It could mean that we explore newer more efficient panels that produce more energy. It could mean applying to add more panels or adding panels on rooftops as our roofs age and need to be replaced.

Q: Have you considered parking lot arrays vs field arrays?

A: Our parking lots do not equal the 10 acres needed for our electrical load. The cost of creating the structures to hold the solar arrays make the project less viable as we would incur additional construction costs.

Q: Have solar panels on rooftops been considered?

A: Rooftop panels were not considered in depth. Having roof panels increases your insurance rates. The time to install rooftop panels is typically  when you re-roof a building. Adding them in mid-life of a roof complicates warranties on the existing roof. Additionally, the square footage of our rooftops does not meet the needs of the district’s electrical load.

Q: What is the maintenance contract?  I know they said we will be responsible for the operation, however, any company that is giving a guarantee like McClure is doing, would have to have a hand in its maintenance.

A: The district will have a maintenance contract with someone to protect our investment in the system. It could be McClure, or it could be another vendor. Our obligation under our contract is to meet requirements for annual maintenance and any guarantee would be conditional to us meeting those annual requirements. The maintenance contract would include services to inspect and maintain warranty of the equipment, testing for efficiencies, and general inspections.    

Q: What about changes in technology?  This technology changes very rapidly. Without upgrading is it even going to be able to support and withstand 40 years? At what cost will these upgrades/updates require over the span of 40 years.  Who will cover this cost?

A: Because Octorara intends to own the system, any upgrades would be at our expense. It is not a stretch to speculate that the technology will improve and an upgrade could be attractive at some point in the future. We are unable to predict what new technologies will cost at this time.

We know our inverters will need to be replaced around year 20 and a projected cost of just over $310,000 is built into the planning. The projections also account for rising costs of maintenance of the system with those projected costs tripling over the life of the solar array.  

Q: What happens to the solar project if McClure files for bankruptcy?

A: We have discussed several of these “What-if” scenarios as part of the project development. As part of the development contract, McClure creates a separate company for the project. This company acts as a safe harbor if McClure Company files for bankruptcy.   

Q: Who will be doing the maintenance on the ground under the arrays?  

A: Octorara would be responsible for the maintenance of the 10 acres under the arrays. 

Q: What about a long term lease program?

A:  Previously, because of where the incentives for installation were awarded, it made sense to lease an array from an installer. This also meant that much of the savings stayed with the installer. Presently, the incentives can be passed to the owner, and therefore the district owning the array is more financially advantageous. 

Q: McClure put up arrays in a financially stressed school district Steelton-Highspire.  It was fully funded by McClure.  They were able to utilize federal tax investment credit to bring down the construction cost by 50%. Would McClure or another installer consider funding this project?

A: The Steelton-Highspire array was under a Power Purchase Agreement. Under this agreement the installer assumes all the risk, but also realizes much of the reward. Under the Steelton-Highspire purchase agreement, according to Representatives Fielders figures, the district is saving $1.6 million over 20 years. Octorara has explored the option of a Power Purchase Agreement with McClure or other carriers, but set it aside as an option because the district is willing to assume the production risk at the site. While an arrangement for a Power Purchase Agreement has not been a part of our recent discussions, yes, either McClure or another company would likely be interested in funding the system. In the district’s research, an agreement of this sort does not yield the savings that we are seeking.

Q: Here is information and videos from Rep. Elizabeth Fielder: https://www.pahouse.com/Fiedler/Solar4Schools all supporting solar in schools, however, in looking at some, here are screenshots that I took from them.  Seems similar to our proposal in size, but look at their numbers.  Not 20 million as in our proposal. Even the 7 year proposed savings seems off. Too good to be true? 

A: We are unsure where Representative Fielder took her numbers or the financial arrangements of the Midd-West School District. Their project is smaller in scale and is generating a portion of their electrical load (saving $145,000 of their annual estimated bill of $420,000). It was reported back to us that Midd-west plans to purchase their array after year 6. 

Our numbers were generated by our financial advisors at Raymond James and we are planning to produce 114% of our electrical load, allowing for degradation of the system and still having capacity to generate 100% in the later years of the life of the system. We ourselves have used the phrase “too good to be true” but they are that good because we are in a financial position to pay for the array and own most of the savings realized. 

Q: What problem is the solar project meant to address, since it does not appear it is related to improving education outcomes?

A: The main problem Octorara is attempting to manage the escalating costs of energy over the life of the system.Typically, as costs increase, tax millage also increases. Long term, the proposed solar array is intended to allow Octorara to do more with what we have by allowing us to bring down the district cost for electricity. This allows for more available funds for improving educational outcomes.

Q: What is the expected funding source for the up front cost of the system?

A: Octorara will take the initial $2 million, of the projected $8.6 million, out of our construction account. Within a year of completion of the system, the district will receive a tax credit from the Federal government for just over $2 million, which will be returned to the construction account. The $6.6 million balance will be funded through a bond issue with the system being paid for over the first 7 years. During the first 7 years, the energy savings from the completed system is more than the cost of the debt service we incur, making the project revenue positive for the district from year 1.

Q: What is the expected life of the solar panels?

A: Solar panels being considered are warranted for 30 years, with a life expectancy of 40 years.

Q: The variance requested from West Fallowfield Township is for the full 88-acre parcel of land.Is it possible that the district could build more than the 10 acres proposed, up to all 88 acres?

A: No. The 88 acre parcel where the school is located where we would like to build the array is zoned Rural Residential (RR).  We needed to request a variance to be able to construct solar with the RR Zoning District. Furthermore, the 10 acres of land the district proposes to develop will produce about 3 megawatts of electricity. The behind the meter regulations only allow the district to build up to 3 megawatts, As anything over 3 is a different classification of energy production and would require additional permitting and development timelines Functionally, we are limited to the amount that the district is proposing.

Q: If more power is needed in the future, does the district plan to expand the proposed solar array?

A: We cannot currently produce more than 3 megawatts of electricity for our campuses. As the district would still be connected to the power grid, if more energy is needed, it will be supplied by the power company. There is a possibility that we see a reduction in our usage, as we install more efficient lights, air conditioning units, and smart energy management controls. In the future, there is also potential to replace the solar panels with more efficient and powerful panels that can generate more, but this would likely mean a reduction in the size of the array overall footprint. Current zoning does not allow the size of the array to be increased.

Q: How much of the $20 million of projected savings is government grants vs actual energy cost savings?

A: Projections are as follows:

SREC Revenue $3,485,780

Solar Electricity Savings years 1-40 $27,749,507

Federal Tax credit $2,027,589

Act 129 Utility Rebate (year 1) $471,600

PA Solar for Schools Funding * ??*

Total Revenue $33,734,476

*This estimate does not yet factor in additional PA state incentives for solar installation, which is to be set in the fall of 2024.

Estimated Debt Service $8,470,417

Estimated Operations/Maintenance & Insurance $4,031,560

Total Expenses $12,501,977

Net Cash Flow Estimated $21,232,500